To distinguish market structure more precisely, the following must considere d o The number of firms in the market or industry Freedom of entry. o Nature of product. Do all firms produce an identical product, or firms produce their own particular brand or model or variety? o The firms degree of control over price Is the firm a price taker can it choose its price, and if so, how will changing its price affect profits? Market power When firms have market power over prices, they can us this to raise prices and profits above the perfectly competitive leve Other things being equal, the firm will gain at the expense of consume Similarly, if consumers or workers have market power, they can use th to their own benefit o Flow of market information. The computerization is and w changing/ change market structureTo distinguish market structure more precisely , the following must be considered l The number of firms in the market or industry. l Freedom of entry. l Nature of product. Do all firms produce an identical product, or do firms produce their own particular brand or model or variety? l The firm’s degree of control over price. Is the firm a price taker or can it choose its price, and if so, how will changing its price affect its profits? Market power When firms have market power over prices, they can use this to raise prices and profits above the perfectly competitive level. Other things being equal, the firm will gain at the expense of consumer. Similarly, if consumers or workers have market power, they can use this to their own benefit. l Flow of market information. The computerization is and will changing/ change market structure